It’s that time of year again! A great time to use your unspent Health Savings funds for your eyecare and eyewear. If you don’t have a health savings account or would like more information, here are a few tid bits and links to find out more. Also, ask your HR department to see if they offer this as a pre-tax benefit.
First, what is a health savings account?
According to healthcare.gov, it is
A type of savings account that allows you to set aside money on a pre-tax basis to pay for qualified medical expenses. A Health Savings Account can be used only if you have a High Deductible Health Plan (HDHP).
High-deductible plans usually have lower monthly premiums than plans with lower deductibles. By using the untaxed funds in an HSA to pay for expenses before you reach your deductible and other out-of-pocket costs like copayments, you reduce your overall health care costs.
HSA funds roll over year to year if you don’t spend them. An HSA may earn interest. You can open an HSA through your bank or other financial institution.
What is the difference between and HSA and a FSA (Flexible Spending Account)?
A Flexible Spending Account or FSA is set up by an employer for an employee. It allows the employee to contribute a portion of their pay (pre-tax) for qualified expenses.
What is the benefit(s) of having a HSA or FSA?
Here is a list of a few benefits. To find out more, see Investopedia.com to see their list.
- Others can contribute to your HSA
- Pre-tax contributions
- Tax-deductible contributions
- Tax-free withdrawals
- Earnings are tax-free
- Funds roll over
What qualifies as acceptable expenses under the HSA?
Here is a list of some of the expenses that are covered under a HSA. For more details, see the government site for a comprehensive list.
- Alcoholism treatment
- Contact lens supplies
- Dental treatments
- Diagnostic services
- Doctor’s fees
- Eye exams, glasses and surgery
- Hearing aids
- Lab fees
- Prescription medications
So, call to schedule your exam, or come by and treat yourself to those stylish prescription glasses you have been ‘eye’ing!